CSL soars after profit rise prediction jumps

Date: November 27 2012

Shares in CSL hit a record high this morning after the world's No. 2 blood products maker said it expects its full-year net profit to jump by 20 per cent, up from previous guidance of a 12 per cent rise, helped by stronger sales and supply-chain efficiencies.

In recent trade, the shares were up 7.6 per cent - $2.80 - to $50.33 - breaking through the $50 barrier for the first time in the company's history.

CSL shares have surged 46 per cent this year, trouncing a 9 per cent rise for the broader market and prompting some analysts to downgrade the stock to a sell based on price.

Managing director Brian McNamee said the improved forecast was largely underpinned by the performance of CSL Behring, a US subsidiary which supplies antibodies to treat immune deficiencies and rare diseases.

‘‘A number of factors have contributed, including a higher level of sales, a better sales mix and improved efficiencies across the supply chain,’’ Dr McNamee said in a statement.

"Also contributing to the better outlook is higher-than-anticipated royalty income from the sales of Gardasil," Mr McNamee said, referring to the cervical cancer vaccine.

Macquarie Group analyst Craig Collie said the positive outlook was testament to its leading position in the medical market.

‘‘It’s clearly a strong upgrade and confirms just how positive market conditions are right now and how strong their competitive position is right now.’’